During August, Gallery Corp. purchased $4,000 worth of supplies. At August 31 the adjusted balance in the Supplies account was $2,800. The adjusting entry included a $1,200 debit to Supplies Expense.

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The adjusted balance in the Supplies account decreased by $1,200 ($4,000 - $2,800) indicating that $1,200 worth of supplies were used during the period, which is reflected in the debit to Supplies Expense.